A whole host of economic data awaited investors in both Germany and the United States over the past few days. The main focus was on the development of US inflation. The start of the reporting season in the US also provided additional impetus. Last but not least, investors are likely to be eagerly awaiting Donald Trump's official inauguration.
DAX Chart
Source: TradingView
China exports rise to record level - US producer prices weaker
Chinese economic data already caused a stir at the start of the week. Chinese exports rose to a record level of around 3.4 trillion euros in 2024, which corresponds to a year-on-year increase of 5.9%.
US producer prices were published on Tuesday. Compared to the previous month, said prices rose by just 0.2%, after 0.4% in November. An increase of 0.3% had been expected in advance.
Core inflation in the USA falls to 3.2 percent - interest rate cut fantasies ensure record sentiment in Frankfurt am Main
As expected, investors were confronted with fresh consumer price data for the USA in the middle of the week, which rose by 2.9% in December (year-on-year), as expected, after 2.7% in November. However, the core rate of inflation, which excludes the drivers energy and food, fell by 0.1 percentage points to 3.2%. The US Federal Reserve considers this rate to be decisive in its assessment of inflation.
German inflation picks up - US retail sales disappoint
According to final data, German inflation rose for the third month in a row in December. Consumer prices rose by 2.6% compared to the same month last year. In November, price pressure was still at 2.2 percent, in October at 2.0 percent and in September at 1.6 percent.
The stock markets were dampened on Thursday by weak US retail sales data. Compared to the previous month, the sector rose by just 0.4 percent, after an increase of 0.6 percent had been expected beforehand, following 0.8 percent in November.
China's economy grows surprisingly strongly - major US banks impress
As at the beginning of the week, new economic data from the Middle Kingdom provided important guidance on Thursday night. China's economy grew by 5.4 percent in the fourth quarter compared to the previous year. The forecast had been for 5.0 percent. Retail sales and industrial production also developed better than expected.
However, the figures should not be overestimated. China continues to groan under the smoldering real estate crisis. The Middle Kingdom also fears the punitive tariffs on imports into the USA that Trump has announced. The Republican officially moves into the White House on January 20.
The start of the reporting season on Wall Street also caused quite a stir. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo, for example, impressed investors with their figures.
In addition to Trump's inauguration, the reporting season is also likely to attract attention in the new trading week.
